Business Startup Q & A

Many people today want to start their own business, and it's probably easier to do than ever before, thanks to our technological world. But business remains business, and there will always be certain rules to follow and traditional ways of looking at starting an entrepreneurial venture. Here are some questions people have about starting their own business and an insight into some answers that will give you a good head start on getting your own business off the ground.

Starting a business opens the door for plenty of suggestions and criticism from family. Many new business owners wonder, "Should I listen to what people have to say?"

The answer is yes and no. To be professional, it's important to listen to what people have to say, no matter what they're saying. That doesn't mean you have to do as they tell you, and it also doesn't mean that the feedback or suggestions they offer are good ones. People close to you feel they have a say in what you do and won't always sugar-coat their opinions, but try to keep in mind that by listening, you're showing respect, and that also, if they feel heard, they probably won't feel the need to keep repeating the same comments over and over. On the other hand, there are plenty of good ideas that can come from the same people, as they'll see your business and decisions from a different perspective, so you just may find that the suggestions they offer might be valuable ones to implement.
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When planning to start a business, what are some of the things that need to be taken care of from the start?

The most important thing to put down on paper is all your ideas about your business. Every time a new idea or a way of working strikes you, write it down, as you may forget the idea while trying to cover lots of other aspects of opening a business. Have a solid plan about how you're going to do business, who you're going to approach for start-up capital, what products or services you're going to sell, and how you're going to promote your business. Also, you'll need to figure out how much you're going to sell your products or services for and what expenses you'll have. Getting a flawless business plan down on paper is the most important thing you'll need to do.

What's a feasibility analysis? Is it the same as a business plan?

Not quite. A feasibility analysis is taking a good, close look at the financial potential of your company, and seeing if it's feasible for your business to be successful, once everything has been factored in. It covers probabilities as well as risks, whereas a business plan is more of a structured outline of how your company will turn a profit. A feasibility analysis can also show you the things you'll need to obtain or develop, such as personal skills or qualifications, and it will show you whether your plans for a home office are possible or if you'll need to rent out office space.

What are some items that I'll need for a home office?

A home office doesn't need much, but there are a few essentials. A computer with internet access is going to be one of the most important investments in your home office, and you should make sure it's a computer with plenty of memory, storage space, and speed. A fax machine is a good idea, and having a phone line for your business is a must. Not everyone enjoys working with emails and a telephone conversation can often get negotiations settled more quickly. Beyond that, a good desk, a filing cabinet, and a comfortable chair are basically all that's needed for your home office. If you'll be having clients come to visit, you'll need extra chairs and you should set up the room to be inviting and comfortable. Lastly, invest in a shredder: Identity theft is a huge problem these days, and you need to protect yourself.

What types of businesses are there and which is best for me?

There are only a handful of basic types of businesses. The first is a sole proprietorship, where you and you alone own the business. You'll have all the decision-making power and you'll reap all the profits. You'll also be responsible for all the expenses and debt, and you'll be the person paying taxes for the business. A partnership resembles a sole proprietorship, only the business responsibilities are split between two or more people with equal power. This includes financial responsibility, so be careful. If you're entering into a partnership with someone, it's important to write up agreements to protect yourself in case of conflict, as well as outlining individual responsibilities. Finally, there's the corporation, which is a business that is a separate legal entity on its own, at least financially. Your assets are protected, but there are tighter restrictions on the managing of a corporation and limited financial options.